ACC 200 Lecture Notes - Lecture 6: Process Manufacturing, Finished Good, Parallel Computing
17 Nov 2017
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Document Summary
Each product within a product line passing through the processes would receive similar doses"" of materials, labor, and overhead costs. Process costing works well whenever relatively homogeneous products pass through a series of processes and receive similar amounts of manufacturing costs. Sequential processing requires that units pass through one process before they can be worked on in the next process in the sequence. Parallel processing is another processing pattern that requires two or more sequential processes to produce a finished good. Partially completed units (e. g. , two subcomponents) can be worked on simultaneously in different processes and then brought together in a final process for completion. Regardless of which processing pattern exists within a firm, all units produced share a common property. Units are homogeneous and subjected to the same operations for a given process and each unit produced in a period should receive the same unit cost.
